Newscasts - Wall St ends mixed after Senate passes Trump's tax-cut bill

Las Vegas Sands

01/07/2025 23:16

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Source: 'Reuters - Business videos'

Description: The Nasdaq closed lower on Tuesday (July 1), dragged down by weakness in large-cap tech stocks, while the Dow ended higher in a volatile session marked by seasonally low liquidity. Lisa Bernhard has more.

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Video Transcript:

US stocks ended mixed on Tuesday, with the Dow gaining just under 1%, the S&P 500 edging down marginally, and the NASDAQ shedding more than 0.8%. The Senate's passage of President Donald Trump's tax and spending package had investors weighing the bill's stimulative effects against its multi trillion-dollar cost, said Alexander Morris, CEO and Chief Investment Officer of F/m Investments.

Today, I think we're really seeing the impact of Washington on Wall Street, which is domestic stocks, big name stocks are moving up, some fear of what's going to happen into higher volatility technology names, but a realistic understanding that the government is going to spend heavily so, and it's going to spend in the names you know and love. If you look at names that are moving, tech names aren't going down, they're just coming off record highs. And it's okay for us to have a day or two of reprieve off of what otherwise is not the macro backdrop for all-time record highs in US equity markets.

Meanwhile, Elon Musk's revived criticism of Trump's bill weighed on shares of Tesla. The EV-maker stock ended more than 5% lower after Trump threatened to cut off the billions of dollars in subsidies that Musk's companies get from the federal government. Among other movers, shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Shares of Wynn Resorts and Las Vegas Sands rose nearly 9% each while shares of MGM Resorts International added more than 7%. Healthcare stocks helped boost the blue-chip Dow with UnitedHealth and Amgen each gaining more than 4%. The latter coming within striking distance of its all-time high reached in December. Investors now shift their focus to Thursday's non-farm payrolls report, which could help recalibrate bets for a rate cut from the Federal Reserve as soon as July.